In recent decades, American companies have faced vast challenges, and have found significant cost savings in changing from paying employees weekly to paying on a bi-weekly, semi-weekly, or monthly basis. This affords a company multiple benefits, including yielding greater interest income by keeping money in the financial institution longer; allowing more time to generate funds with which to make payrolls; minimizing payroll department personnel and workload requirements; and reducing the costs associated with administering payroll. Though this practice has proven to be very beneficial to companies, it has had a long-term, detrimental effect on society as a whole.
More relevant than just the mere psychological satisfaction of collecting pay at the end of each week is the reality that, in general, most people are not good managers of money. The greater majority either cannot or do not budget their income, and often find themselves stretching to make it until the next pay period. Accordingly, Americans frequently rely on resources such as high interest rate credit cards, loans, and check advance services. The result is personal debt. Debt-related stress continues to be the number one cause of divorce in America. Personal debt is a large contributor to depression and suicide. It is a major cause of health issues, insomnia, and low self-esteem.
Accordingly, it is an object of the present invention to offer an equitable solution to both company and employee. By offering to pay continuing base-net pay to employees who have already earned and are owed this money, but who would not normally receive it until their company's scheduled payday, the needs of both employees and company can be met. Using the present invention, an employee will receive his or her earned money each week as bills come due, or emergencies arise, thus providing a means for self-sufficiency through improved personal money management. Moreover, it is an additional object of the present invention to promote a steady and flowing national economy by permitting large companies and government agencies to provide their employees who are not currently paid weekly with the option to receive weekly pay, without cost to the company.
It is thus also an object of the present invention to provide a means for employees to achieve self-sufficiency, improve their credit scores, have an alternative to using costly credit cards or check advance companies, avoid expensive overdraft fees and associated charges, reduce personal debt, and reduce financial stress and the ill effects that accompany it.
Accordingly, it is seen that a need remains for a method of payment that provides for weekly pay to employees who are paid bi-weekly, semi-monthly, or monthly. It is to the provision of such that the present invention is primarily directed.